As part of a bold new energy policy, the Danish government has exempted electric cars from all taxes until 2012. It’s all part of the Scandinavian country’s aggressive plan towards renewable energy. In March of this year Denmark’s Dong Energy in a partnership with a San Jose company, announced plans to build a 20,000 node recharging grid to be completed in 2011. That grid will be mostly powered from renewable wind energy.

The new tax credit has caused a rush of car makers looking to release electric cars for the favorable economic conditions in Denmark. Some of the car makers entering the market are Mercedes Benz, Saab, Volvo, France’s Axiom, China’s BYD, and America’s Tesla Motors.

It should be interesting in the next coming years to see if Denmark becomes the first country to have a real renewable energy powered car fleet.